Beirut International Franchise Forum

Panel 3: E-commerce & Mobile Shopping; The Future Shopping Reality

Mr. Guy GrasHead of Legal Department & Regulatory Affairs

Yves Rocher Group

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YVES ROCHER IN FRANCE AS AN EXAMPLE OF A « CLICK AND MORTAR » STRATEGY

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CLICK AND MORTAR : EVERYBODY’S THINKING ABOUT IT !

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OUR STRATEGY IN 6 KEY POINTS(DEFINED IN 2011)

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1 - TO CONDUCT CHANGE MANAGEMENT :

Changing the way of thinking in our franchising network

2 - TO DEVELOP A MULTI-CHANNEL CUSTOMER POLICY :

Customer at the center of Yves Rocher Brand

3 - TO DEVELOP BRAND LOYALTY :

Customer doesn’t belong to only one channel of distribution

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6 - TO USE SOCIAL NETWORKS TO PROMOTE BUSINESS BOTH ON THE WEB AND IN THE STORES:

Internet necessarily includes social networks

4 - TO INCREASE AND ENHANCE OUR E-MAIL AND PHONE NUMBER DATA BASE :

Easier said than done

5 - TO DEFINE AND CARRY OUT A COHERENT PROMOTIONAL POLICY

Internet is not positioned as the discount channel of the brand

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ACTION PLAN

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1- CHANGE MANAGEMENT

- To install an internet connection in every store.

- To explain to our franchisees our vision of, and policy on,

internet.

To get our partners to use internet in all their activities:

- Internet brand portal information for all our stores

- Dematerialization of invoices

- Products ordered on line

- Training by e-learning for our franchisees and their employees

1st step

2nd step

Main purpose => To show how internet can efficiently help our franchisees in their day to day business

2012 100% of the stores connected

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2 – MULTI-CHANNEL CUSTOMER POLICY

Two examples :

Example N° 1 : POSSIBILITY FOR CUSTOMERS TO BENEFIT IN STORES FROM SPECIAL OFFERS AVAILABLE ON INTERNET

- Implementation in the IT system used in stores of a specific function enabling our franchisees to sell to their customers the special offers available on internet (by using a specific « multi-channel key » on the keyboard).

Profiter de cette offre en magasin

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2 - MULTI-CHANNEL CUSTOMER POLICY

Example N°2 : TO INCREASE THE NUMBER OF PURCHASES MADE, AND THE LOYALTY TO THE BRAND, OF OUR MANY SMALL INTERNET OR STORE CUSTOMERS, BY GETTING THEM TO USE BOTH CHANNELS.

A small customer is someone who makes only one purchase per year (Yves Rocher is not her main brand of beauty products ).

With only one purchase per year, a customer is not loyal to a channel, and so we have scope to considerably increase our turnover by getting her to discover another Yves Rocher channel.

« SMALL » INTERNET CUSTOMERS special contact plan with the objective of converting them to store purchases

« SMALL » STORE CUSTOMERSspecial contact plan with the objective

of converting them to internet purchases

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3 – BRAND LOYALTY

HOW CAN WE INTEREST INTERNET CUSTOMERS IN STORE

PURCHASES ?

Some examples:

- E-mails promoting stores when a customer finishes her order on internet or leaves internet without ordering.

- E-mails promoting our beauty parlors or providing information about our stores.

- E-mails inviting internet customers to attend the opening of a new store located in their town.

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3 – BRAND LOYALTY

HOW CAN WE INTEREST AN INTERNET CUSTOMER IN STORE

PURCHASES ?

Other examples:

- Possibility of making appointments on-line in our beauty parlors.

- Possibility of buying products on internet and picking them up in our stores.

- Exchange in our stores of products bought on internet.

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3 – BRAND LOYALTY

HOW CAN WE INTEREST STORE CUSTOMERS IN INTERNET PURCHASES ?

Two examples :- Providing information in stores about our own website and those of our franchisees.- Several million postcards and e-mails sent to store customers, including information about our website.SHOP

WINDOW

CHECKOUTS

BEAUTY PARLORWAITING ROOM

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40% more e-mails in our data base at the end of 2011

Increase of

+ Increase and enhancement of the customer data base by using the franchisees:

4 – INCREASING AND ENHANCING THE DATA BASE

+ 92% of e-mails sent in 2011

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5 – A COHERENT PROMOTIONAL POLICY

PROMOTIONAL POLICY:

• Simultaneous product launches in stores and on internet.

• Same products launched at the same prices.

• For Yves Rocher, internet is not a discount distribution channel for products: no big difference of discount on internet and in stores.

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6 – USING SOCIAL NETWORKS TO PROMOTE BUSINESS

Every Yves Rocher store has its own

page for « Friends » on Facebook.

With two objectives:

1 - Information about the store.

2 - Use of internet content to promote our products.